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General Motors is one step closer to bringing its Volt concept to production, having selected two companies to supply lithium-ion batteries for its plug-in electric car.

Michigan-based Compact Power, a subsidiary of Korean battery manufacturer LG Chem, along with German tier-one auto supplier Continental Automotive Systems were both selected out of 13 companies to spearhead battery development for the Volt. GM’s new E-Flex System, an electric drivetrain that’s capable of being used in a variety of vehicle types, will be featured in the Volt.

A range-extender electric and a fuel-cell version of the E-Flex architecture will be produced, each requiring a specific battery type. The fuel-cell variant;will require a;significantly less powerful and durable;type than the range-extender unit, for example.

Developing suitable batteries for the E-Flex System is a major hurdle for GM and a major factor in how quickly the Volt and other vehicles to be based on the E-Flex architecture come to market. Rumors have been circulating that;a production version of the;Volt could be seen on public roads by 2011 or 2012, but only time will tell how fast development will progress.